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Fannie Mae asks Treasury for aid | Fannie Mae asks Treasury for aid |
(30 minutes later) | |
US mortgage finance firm Fannie Mae has asked the Treasury for another $19bn (£12.6bn), as it announced a loss for the first three months of 2009. | US mortgage finance firm Fannie Mae has asked the Treasury for another $19bn (£12.6bn), as it announced a loss for the first three months of 2009. |
It is the second time that Fannie Mae has requested government aid in recent months. It received $15.2bn in March. | |
The Treasury has made available funds of $200bn each to Fannie Mae and fellow mortgage giant Freddie Mac. | |
Fannie Mae reported a loss of $23.2bn, but it was smaller than the $25.2bn loss it made in the previous quarter. | Fannie Mae reported a loss of $23.2bn, but it was smaller than the $25.2bn loss it made in the previous quarter. |
The firm said the loss was driven by credit-related expenses of $20.9bn. | The firm said the loss was driven by credit-related expenses of $20.9bn. |
It also took a $5.7bn loss on mortgage securities. | |
"Persistent deterioration in housing, mortgage, financial and credit markets continued to adversely affect our financial results," the company said. | "Persistent deterioration in housing, mortgage, financial and credit markets continued to adversely affect our financial results," the company said. |
Fannie Mae and Freddie Mac buy mortgages from approved lenders then sell them to investors. Together they underwrite more than half of all US mortgages. | |
Freddie asked the Treasury for another $31bn after receiving $13.8bn in aid last year. | |
Fannie Mae has asked the Treasury to provide the latest tranche on or before 30 June. |